What is the difference between FDI and FPI?

FDI stands for Foreign Direct Investment and FPI stands for Foreign Portfolio Investment. The FDI makes it a point to ensure that the company where the investment is made will be controlled while the FPI aims to make sure that profits will be invested in different shares and bonds. The FPI will have no control over the company. A lot of people would rather invest in FPI because they believe that this is less risky.

The FPI can be invested in a lot of different things such as bonds, stocks, and even other similar instruments. Still, people can choose what they would like to invest in depending on what they think will be good for them or will fit their lifestyle more.